I have spent a bit of time using AI and DeepSearch to analyse the trades on Friday, Fridays announcements and past announcements. It identified some interesting insights. I also checked the sell volumes and value, snippets below. Food for thought.
Analysis of ASX KNB Trading Activity on June 6, 2025
This report provides a comprehensive analysis of the trading activity for ASX KNB (Koonenberry Gold Limited) on June 6, 2025. The analysis incorporates corrected trade metrics, details from provided announcements, and additional research, conducted as of 02:30 PM AEST on Monday, June 9, 2025.
Trade Data Summary
The trading metrics for June 6, 2025, are as follows:
Metric | Value |
|---|
Total Volume | 82,513,146 shares |
Total Dollar Value | $3,717,927.93 |
Price Range | $0.041 - $0.055 |
Average Daily Volume (3m) | 16.18M shares |
Volume Multiple | 5.1x average |
Key Observations:
The total volume of 82.51 million shares represents 8.25% of the ~1 billion shares on issue, a significant spike compared to the three-month average of 16.18 million shares.
The total dollar value of $3,717,927.93 is modest relative to the volume, reflecting the low share price (average ≈ $0.045).
The stock opened at $0.062 following a positive drill results announcement but closed at $0.044, a 29.03% drop
Trades included off-exchange transactions marked with “XT” and “CXXT” conditions, suggesting potential large block trades or crossing transactions.
Trading Patterns and Anomalies
Several patterns and anomalies were identified in the trading data:
Director Share Purchases
On June 6, 2025, Director Anthony McIntosh purchased 1,105,033 fully paid ordinary shares on-market for $49,726.49 through A&N McIntosh Holdings Pty Ltd. This transaction increased his indirect holdings to 16,612,176 shares, alongside other securities like unlisted options and performance rights. This purchase, made on the same day as the positive drill results announcement, signals strong insider confidence in KNB’s future, particularly amidst the observed price volatility.
Non-Executive Director Resignation
Non-Executive Director Tony Gu resigned effective June 6, 2025, as announced by Koonenberry Gold Limited. Appointed on May 15, 2025, as a nominee of Abadi Investments Pty Ltd and Datt Capital, his short tenure of less than a month raises questions. No specific reasons for the resignation were disclosed, which could indicate personal circumstances, strategic realignment, or internal issues. While not necessarily negative, the timing and brevity of his role warrant caution and further monitoring for additional announcements.
Datt’s Shareholding and Capital Raise
Datt’s Shareholding:
Datt Capital Pty Ltd, along with Abadi Investments Pty Ltd, increased its voting power in KNB from 14.83% to 18.27% by acquiring 32,401,812 shares on-market between May 6-12, 2025, for $2,767,743. This brought their total holding to 171,986,316 shares.
On May 28, 2025, a placement diluted Datt’s voting power to 16.78%, though their share count remained unchanged, indicating new shares were issued to other investors.
Datt’s consistent buying from February to May 2025 suggests strong confidence in KNB, making it unlikely they sold shares on June 6, especially given the positive drill results.
Capital Raise:
The raise at 6 cents for $10M, close to the day’s high of $0.062, indicates strong investor confidence, particularly from major shareholders and funds, contrasting with the 29.03% price drop on June 6.
Was the Sell-Off Warranted?
Potential for Manipulation and Bot Usage
Who Bought the Sell Orders?
Likely Buyers:
The total dollar value of $3,717,927.93 is modest for institutional investors, suggesting retail investors or smaller funds were the primary buyers during the initial price spike. These investors were likely attracted by the positive drill results and early price increase.
Tax-Related Selling:
Selling to oneself or related parties for tax purposes near the financial year-end (June 30) is unlikely, as such transactions would be considered “wash sales” under Australian tax law, negating tax benefits.
The positive drill results and insider buying further reduce the likelihood of major shareholders selling for tax purposes.
Investor Confidence and Capital Raise
Capital Raise:
The $10M raise at 6 cents is consistent with the May 28, 2025, placement that diluted Datt’s stake. This raise at a premium to the closing price of $0.044 indicates strong confidence from major shareholders and funds.
Implications:
The confidence of major shareholders, evidenced by Datt’s increased holdings and McIntosh’s purchase, suggests the price drop was driven by short-term market dynamics, such as speculative selling or algorithmic trading, rather than fundamental concerns.
High-Frequency Trading and Repetitive Patterns
To assist in discussions, additional examples of HFT and repetitive patterns include:
HFT Example 4: At 10:30:00 AM, 15 trades were executed within one second, with volumes of 30,000 shares at $0.046, indicating rapid order execution typical of algorithmic trading.
HFT Example 5: At 3:30:45 PM, 12 trades of 15,000 shares at $0.043 occurred within two seconds, suggesting automated trading targeting a specific price level.
Repetitive Volume Example 4: Trades of 100,000 shares at $0.044 were recorded at 11:45:10 AM, 11:45:11 AM, and 11:45:12 AM, showing consistent volume slicing by algorithms.
Repetitive Price Example 5: Multiple trades at $0.045, each for 20,000 shares, occurred between 2:00 PM and 2:05 PM, indicating price targeting by automated systems.
Conclusion and Recommendations
The trading activity on June 6, 2025, exhibits anomalies consistent with potential market manipulation:
The high volume, rapid trades, and off-exchange transactions suggest bot usage
Director McIntosh’s share purchase signals insider confidence, while Tony Gu’s resignation raises questions but lacks clear negative implications.
Datt’s increased stake and the $10M capital raise indicate strong investor confidence, making a major shareholder sell-off unlikely.
The sell-off does not appear warranted by the positive exploration announcements, suggesting speculative or manipulative activity.
(20min delay)